ELROND - Bullish pattern with big possibilities !Elrond is a layer 1 that has seen great success during the 2021 bullrun. Since then, price has now fully retraced the price surge of 2021.
Since Juli 2022 price has slowed down its decline and created a range. Price has never fully broken out from that range, but has seen a surge in price in October 2023. This creates the possibility for a big W-pattern to be formed as seen on screenshot 1. Price has also been inside a downward parallel channel (bullish) since April 2024 favouring a push up. This still won’t tell us if price will form a big M-pattern at the 0.618, 0.786 or 0.886 Fib at 56.5$, 66$ and 71.5$ respectively or if price will break the local top at 78$ and create the aforementioned big W-pattern with the resulting target at 112$ that also exactly coincides with the lows of the previous range.
What it does tell me is that we are now sitting at interesting prices for either outcome. Even if we get the most dissapointing wave up possible, we will most likely be able to sell our tokens in profit.
A sure win ! But let’s keep in mind that this is the cryptocurrency market and a breakdown from BTC or the traditional markets could hinder all of our chances for a profit in a matter of hours !
Elrond - On the daily timeframe price has been holding the big Hammer candle from the 5th of August. Price has also been following a downward parallel channel that tipically has a bullish bias. Price has also been able to hold the central trendline of the parallel channel and as long as price remains above it, there is a bias for price to hit the upper trendline.
If price is able to break above and retest the downwards parallel channel, price movement could quickly accelerate higher. The almost assured targets would be the 0.618, 0.786 or 0.886 Fibs, meaning a topping pattern between 56-72$.
Altough, if price is able to get above the local top at 78$, it would open the possibilities for a big W-pattern breakout with a first 1.618 Fib target at 112$. A good return on investment from where we are sitting at right now.
Total3 - Total3 (crypto market cap excluding BTC and ETH) is moving in a downward parallel channel (bullish), similar to BTC. We're still trading between the 21 and 50 daily moving averages after bouncing from the latter. If the price can remain above upper trendline of the downward parallel channel and the 50-day moving average, there is still a chance for a big surge in altcoins. a break and confirmation back into the parallel channel would be very detrimental for the altcoin market.
The last step before the market cap can accelerate is for it to break 650B$ mcap. This could bring the funds that Elrond and other altcoins need to start pushing up and breaking resistances.
I wish you all a nice end of the weekend and good luck trading !
ZEDDIT
